Skip to main content
SpringerLink
Log in

The role of electronic word of mouth, conventional media, and subjective norms on the intention to purchase Sharia insurance services

  • Original Article
  • Published:
Journal of Financial Services Marketing Aims and scope Submit manuscript

Abstract

The aim of this study was to investigate the effect of electronic word of mouth (eWOM) and conventional media on subjective norms and intention to purchase Sharia insurance in Indonesian Muslim society. The research data consisted of 458 Muslim clients who were members of an online community and also policy holders of Sharia insurance in the three largest cities in Indonesia: Jakarta, Semarang, and Surabaya. This study used purposive sampling and structural equation modeling. The research showed that eWOM and conventional media can affect subjective norms. Additionally, subjective norms have a significant effect on the intention to purchase among Sharia insurance customers. This study validated the importance of the variables of eWOM and conventional media in influencing subjective norms and intention to purchase. For Sharia insurance company management, this study can serve as a very useful reference in drafting and formulating campaign strategies. This study also justifies the integrated relationship between eWOM and conventional media with subjective norms and intention to purchase Sharia insurance.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • AASI, Indonesia Sharia Insurance Association. 2015. Sharia insurance business data. AASI Report, www.aasi.or.id/main/data-bisnis-2015. Accessed 21 Oct, 2016.

  • Ajzen, I. 1988. Attitude, personality, and behavior. Chicago, IL: The Dorsey Press.

    Google Scholar 

  • Ajzen, I. 1991. The theory of planned behavior. Organizational Behavior and Human Decision Processes 50 (2): 179–211.

    Article  Google Scholar 

  • Amron, A., and U. Usman. 2016. Customer satisfaction in the marketing of inland transit insurance service. International Journal of Applied Business and Economic Research 14 (12): 8311–8321.

    Google Scholar 

  • Amron, Usman, and A. Mursid. 2018. Buying decision in the marketing of Sharia life insurance (evidence from Indonesia). Journal of Islamic Marketing 9 (2): 370–383.

    Article  Google Scholar 

  • Babbie, E. 2007. The practice of social research. Belmont, CA: Wadsworth.

    Google Scholar 

  • Billah, M.M. 1998. Islamic insurance: Its origin and development. Arab Law Quarterly 13 (4): 386–422.

    Article  Google Scholar 

  • Boulanouar, Z., and F. Alqahtani. 2016. IPO underpricing in the insurance industry and the effect of Sharia compliance. International Journal of Islamic and Middle Eastern Finance and Management 9 (3): 314–332.

    Article  Google Scholar 

  • BPS, Indonesia Central Bureau of Statistics. 2010. Nationality, etnis, religion, and local language of Indonesian people. BPS Report, www.bps.go.id/index.php/publikasi/719. Accessed 04 Oct 2016.

  • Byon, K.K., S. Lee, and T.A. Baker. 2014. A cross-cultural study of purchase intention of sponsored products based on American and Korean spectators of the 2010 FIFA World Cup South Africa. Sport, Business and Management: An International Journal 4 (2): 158–177.

    Article  Google Scholar 

  • Chatterjee, P. 2001. Online reviews: do consumers use them? Advances in Consumer Research 28 (1): 129–133.

    Google Scholar 

  • Cronbach, L.J. 1951. Coefficient alpha and the internal structure of tests. Psychometrika 16 (3): 297–335.

    Article  Google Scholar 

  • Davis, A., and D. Khazanchi. 2008. An empirical study of online word of mouth as a predictor for multi-product category e-commerce sales. Electronic Markets 18 (2): 130–141.

    Article  Google Scholar 

  • Ernst & Young. 2011. The World Takaful Report 2011. Dubai: Ernst & Young.

    Google Scholar 

  • Feiz, D., M. Fakharyan, M.R. Jalilvand, and M. Hashemi. 2013. Examining the effect of TV advertising appeals on brand attitudes and advertising efforts in Iran. Journal of Islamic Marketing 4 (1): 101–125.

    Article  Google Scholar 

  • Fishbein, M., and I. Ajzen. 1975. Belief, attitude, intention and behaviour: An introduction to theory and research. Reading, MA: Addison-Wesley.

    Google Scholar 

  • Fong, J., and S. Burton. 2008. A cross-cultural comparison of electronic word-of-mouth and country-of-origin effects. Journal of Business Research 61 (3): 233–242.

    Article  Google Scholar 

  • Abdullah, N.I. 2012. Analysis of demand for family takaful and life insurance: A comparative study in Malaysia. Journal of Islamic Economics, Banking and Finance 8 (4): 67–86.

    Google Scholar 

  • Harrison, T.S., O.P. Onyia, and S.K. Tagg. 2014. Towards a universal model of internet banking adoption: Initial conceptualization. International Journal of Bank Marketing 32 (7): 647–687.

    Article  Google Scholar 

  • Hair Jr., J.F., W.C. Black, B.J. Babin, R.E. Anderson, and R. Tatham. 2014. Multivariate data analysis, 7th ed. Essex: Pearson Education Ltd.

    Google Scholar 

  • Hennig-Thurau, T., K.P. Gwinner, G. Walsh, and D.D. Gremler. 2004. Electronic word-of-mouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the Internet? Journal of Interactive Marketing 18 (1): 38–52.

    Article  Google Scholar 

  • Hu, L.T., and P.M. Bentler. 1999. Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal 6 (1): 1–55.

    Article  Google Scholar 

  • Husin, M.M., N. Ismail, and A.A. Rahman. 2016. The roles of mass media, word of mouth and subjective norm in family takaful purchase intention. Journal of Islamic Marketing 7 (1): 59–73.

    Article  Google Scholar 

  • Husin, M.M., and A.A. Rahman. 2013. What drives consumers to participate into family takaful schemes? A literature review. Journal of Islamic Marketing 4 (3): 264–280.

    Article  Google Scholar 

  • Jalilvand, M.R., and N. Samiei. 2012. The impact of electronic word of mouth on a tourism destination choice: Testing the theory of planned behavior (TPB). Internet Research 22 (5): 591–612.

    Article  Google Scholar 

  • Khan, M.M.M., and M.I. Bhatti. 2008. Islamic banking and finance: on its way to globalization. Managerial Finance 34 (10): 708–725.

    Article  Google Scholar 

  • Mafé, C.R., S.S. Blas, and J.F. Tavera-Mesías. 2010. A comparative study of mobile messaging services acceptance to participate in television programmes. Journal of Service Management 21 (1): 69–102.

    Article  Google Scholar 

  • Mortazavi, M., M.R. Esfidani, and A.S. Barzoki. 2014. Influencing VSN users’ purchase intentions. Journal of Research in Interactive Marketing 8 (2): 102–123.

    Article  Google Scholar 

  • Olson, D., and T.A. Zoubi. 2008. Using accounting ratios to distinguish between Islamic and conventional banks in the GCC region. The International Journal of Accounting 43 (1): 45–65.

    Article  Google Scholar 

  • Palmer, A., and N. Koenig-Lewis. 2009. An experiential, social network-based approach to direct marketing. Direct Marketing: An International Journal 3 (3): 162–176.

    Article  Google Scholar 

  • Riquelme, H.E., E.M.S. Abbas, and R.E. Rios. 2012. Intention to purchase fake products in an Islamic country. Education, Business and Society: Contemporary Middle Eastern Issues 5 (1): 6–22.

    Article  Google Scholar 

  • Rossmann, A., K.R. Ranjan, and P. Sugathan. 2016. Drivers of user engagement in eWoM communication. Journal of Services Marketing 30 (5): 541–553.

    Article  Google Scholar 

  • Salman, L. 2013. Shariah juristical effect of gharar in predetermining takaful contribution. International Journal of Education and Research 1 (2): 1–12.

    Article  Google Scholar 

  • Sen, S., and D. Lerman. 2007. Why are you telling me this? An examination into negative consumer reviews on the web. Journal of Interactive Marketing 21 (4): 76–94.

    Article  Google Scholar 

  • Silverman, G. 2001. The secrets of word-of-mouth marketing: How to trigger exponential sales through runaway word-of-mouth. New York, NY: Amacom Books.

    Google Scholar 

  • Taylor, S., and P. Todd. 1995. Decomposition and crossover effects in the theory of planned behaviour: A study of consumer adoption intentions. International Journal of Research in Marketing 12 (2): 137–155.

    Article  Google Scholar 

  • Viglia, G., R. Minazzi, and D. Buhalis. 2016. The influence of e-word-of-mouth on hotel occupancy rate. International Journal of Contemporary Hospitality Management 28 (9): 2035–2051.

    Article  Google Scholar 

  • Weisberg, J., D. Te’eni, and L. Arman. 2011. Past purchase and intention to purchase in e-commerce: The mediation of social presence and trust. Internet Research 21 (1): 82–96.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Economic and Business Faculty, Universitas Dian Nuswantoro, Jl. Nakula I No. 5-11, Semarang, 50131, Jawa Tengah, Indonesia

    Amron Amron & Usman Usman

  2. Department of Business Administration, National Dong Hwa University, Jhyxuesyncun Apartment 101-3, Shou-Feng, Hualien, Taiwan, Republic of China

    Ali Mursid

Authors
  1. Amron Amron
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Usman Usman
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ali Mursid
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Amron Amron.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Amron, A., Usman, U. & Mursid, A. The role of electronic word of mouth, conventional media, and subjective norms on the intention to purchase Sharia insurance services. J Financ Serv Mark 23, 218–225 (2018). https://doi.org/10.1057/s41264-018-0055-8

Download citation

  • Revised:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41264-018-0055-8

Keywords

Search

Navigation